POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Operations Management - TQM

Final Examination

Name: ____________________________________ Score: ___________________

Course: ____________________________________ Date: ___________________

General Instructions: Faith is the confidence that what we hope for will happen; it gives us assurance about
things we cannot see. Have faith and always bear in your mind that you can answer everything to the best that
you can. Always observe HONESTY during the examination. GODBLESS!

1. The technique must be able to produce meaningful results quickly. The technique which takes much time to
produce useful information is of no use.
A. Accuracy C. Economy
B. Simplicity D. Availability

2. Statement 1: Quality and cost control should be given a lot of importance in the production industry.
Statement 2: Production management decreases the reputation, goodwill and image of business organization.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

3. Statement 1: Strategy formulation for in corporate, business and functional levels are the same
Statement 2: No business organization could exist without operations management and supply chain.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

4. Statement 1: Demand forecasting plays a critical role in budget making by estimating the cost and expected
income or revenues
Statement 2: Demand forecasting aids in fulfilling the post-decided objectives of any business organization..
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

5. Statement 1: Most of the business organization's decisions are made under no risk and certainty conditions.
Statement 2: A business firm may not make demand forecasts for different regions and fix sales targets for each
accordingly
A. Only statement 1 is correct C. Both statements are correct

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 B. Only statement 2 is correct D. Both statements are incorrect

6. Sales forecast permits an evaluation of expenses and income etc.

A. Sales Planning C. Financial Planning
B. Inventory Control D. Production Control

7. It helps in finding out which territory needs more attention.

A. Sales Planning C. Financial Planning
B. Inventory Control D. Production Control

8. Statement 1: The four phases of the product life cycle are incubation, introduction, growth, and
Decline.
Statement 2: In the maturity stage of the product life cycle, operations managers will be particularly.
concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand.

A. Only statement 1 is correct C. Both statements are correct

B. Only statement 2 is correct D. Both statements are incorrect

9. Statement 1: Computer-aided design (CAD) refers to the use of specialized computer programs to
direct and control manufacturing equipment
Statement 2: Robust design ensures that small variations in production or assembly do not adversely
affect the product.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

10. Statement 1: Modular design exists only in tangible products; it makes no sense in services.
Statement 2: The objective of the product decision is to develop and implement a product strategy
that meets the demands of the marketplace with a competitive advantage.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

11. Statement 1: Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a
national leader in several quality areas—so that continuous improvement is no longer
necessary.
Statement 2: An improvement in quality must necessarily increase costs.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

12. Statement 1: Improved quality can increase profitability via allowing flexible pricing.
Statement 2: The definition of quality adopted by The American Society for Quality is a customer-
oriented (i.e., user based) definition.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

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 13. The three major elements of the product decision are:
A. selection, definition, and design. C. strategy, tactics, and operations
B. goods, services, and hybrids D. cost, differentiation, and speed of response.

14. Operations managers must be able to anticipate changes in which of the following?
A. product mix C. the product themselves
B. product opportunities D. All of the above

15. Statement 1: Conforming to standards is the focus of the product-based definition of quality.
Statement 2: Internal failure costs are associated with scrap, rework, and downtime.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

16. Statement 1: "Making it right the first time" is the focus of the user-based definition of quality.
Statement 2: Quality is mostly the business of the quality control staff, not ordinary employees.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

17. Statement 1: TQM is important because each of the ten decisions made by operations managers deals with some
aspect of identifying and meeting customer expectations.
Statement 2: The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process,
product, or service capability; the other is a comprehensive system for achieving and sustaining business
success.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

18. Statement 1: Continuous improvement is based on the philosophy that any aspect of an operation can be
improved.
Statement 2: Kaizen is similar to TQM in that both are focused on continuous improvement.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

19. Statement 1: Quality circles empower employees to improve productivity by finding solutions to work-
related problems in their work area.
Statement 2: Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to
benchmark by comparing one of your divisions to another of your divisions.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

20. At which stage of the product life cycle is product strategy likely to focus on improved cost control?
A. Introduction C. Maturity
B. Growth D. Saturation

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 21. A result of concurrent engineering in product design is:
A. Speedier product development C. Less customer demmand
B. Lower quality D. Higher costs

23. Which of the following is true regarding value engineering?

A. Value engineering occurs only after the product is selected and designed.
B. Value engineering creates fragile design.
C. Value engineering is oriented toward improvement of design.
D. Value engineering occurs during production.

24. Which of the following is TRUE regarding computer-aided design?

A. IT is too expensive to use in most manufacturing and design settings.
B. It is an obsolete technology.
C. It results in longer development cycles for virtually all products.
D. It is the use of computers to interactively design products and prepare engineering documentation.

25. A successful quality strategy features which of the following elements?

A. an organizational culture that fosters quality
B. engaging employees in the necessary activities to implement quality
C. an understanding of the principles of quality
D. A, B, and C

26. "Quality lies in the eyes of the beholder" is:

A. an unrealistic definition of quality.
B. a user-based definition of quality.
C. a manufacturing-based definition of quality.
D. a product-based definition of quality

27. Which of the following is NOT one of the major categories of costs associated with quality?
A. Prevention costs C. Internal failure costs
B. Appraisal Cost D. All of the above

28. PDCA is most often applied with regard to which aspect of TQM?
A. Six Sigma C. JIT
B. employee empowerment D. Continuous improvement

29. A successful TQM program incorporates all EXCEPT which of the following?
A. Continuous Improvement C. benchmarking
B. Employee involvement D. centralized decision-making authority.

30. Kaizen is a Japanese term meaning:

A. a foolproof mechanism C. a fishbone diagram

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 B. just-in-time (JIT) D. continuous improvement

31. Statement 1: Line employees need the knowledge of TQM tools.

Statement 2: One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory,
bad quality is exposed.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

32. Statement 1: The quality loss function indicates that costs related to poor quality are low as long as
the product is within acceptable specification limits.
Statement 2: Pareto charts are a graphical way of identifying the few critical items from the many less
important ones.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

33. Statement 1: Analytical estimating is used for fixing the standard time for jobs which are very long and non-
repetitive.
Statement 2: Time study uses stop watch and is best suited for short-cycle repetitive jobs
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

34. Which of the following statements regarding "Six Sigma" is TRUE?

A. The term has two distinct meanings–one is statistical; the other is a comprehensive quality system.
B. Six Sigma means that about 94 percent of a firm's output is free of defects.
C. The Six Sigma program was developed by Toyota in the 1970s
D. The Six Sigma program is for manufacturing firms and is not applicable to services.

35. A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in
raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from
a variety of other causes. This manager is most likely using:
A. Pareto Chart C. a cause-and-effect diagram.
B. Scatter diagram D. Flowchart

36. A fishbone chart is also known as a:

A. cause-and-effect diagram C. Kaizen diagram
B. poka-yoke diagram. D. Kanzen diagram

37. Statement 1: In functional layout, similar resources or processes are located together.
Statement 2: Many operations either design themselves hybrid layouts which combine elements of some or all
of the basic layout types or use the ‘pure’ basic layout types in different parts of the operation.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

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 38. Outsourcing some production is a means of _________ a capacity constraint.
A. Identifying C. Supporting
B. Modifying D. Overcoming

39. A stock or store of goods is called a(n):

A. Bundler C. Supply Chain
B. Servicer D. Inventory

40. In which type of operation are you likely to see, at most, only minor variations in theproduct or service being
produced using the same process and the same equipment?
A. A project C. Repetitive Production
B. A job shop D. Batch Processing

41. The process of assigning tasks to workstations in such a way that the workstations have approximately equal
time requirements is called:
A. Fair employment practices C. line balancing
B. Idle time analysis D. cycle time optimization

42. The substitution of machinery that has sensing and control devices for human labor is best described by the
term:
A. Automation C. Computer-integrated manufacturing
B. Computer-aided manufacturing D. Flexible manufacturing system

43. A product focused, single piece flow, pull production system:

A. Cellular Layout C. Assembly Time
B. Job Shop D. Non-repetitive process

44. An example of automated services is:

A. Online banking C. Haircuts
B. Build your own Pizza D. Massage parlors

45. Cost of testing, evaluating and inspecting quality.

A. Prevention costs C. Internal failure costs
B. Appraisal Cost D. All of the above

46. The "four Ms" of cause-and-effect diagrams are:

A. material, machinery/equipment, manpower, and methods.
B. material, methods, men, and mental attitude.
C. named after four quality experts.
D. material, management, manpower, and motivation.

47. Total quality management emphasizes:

A. the responsibility of the quality control staff to identify and solve all quality-related problems.
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 B. a commitment to quality that goes beyond internal company issues to suppliers and customers.
C. a system where strong managers are the only decision makers.
D. a process where mostly statisticians get involved.

48. Statement 1: Product strategy may focus on developing a competitive advantage via differentiation, low cost,
rapid response, or a combination of these.
Statement 2: Quality function deployment refers to both (1) determining what will satisfy the
customer and (2) translating those customer desires into a target design.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

49. Statement 1: Operations managers are responsible for assessing consumer wants and needs and selling and
promoting the organization's goods or services
Statement 2: Often, the collective success or failure of companies' operations functions will impact the
ability of a nation to compete with other nations.
A. Only statement 1 is correct C. Both statements are correct
B. Only statement 2 is correct D. Both statements are incorrect

50. Statement 1: Companies are either producing goods or delivering services. This means that only one of the two
types of operations management strategies are used.
Statement 2: Operations, marketing, and finance function independently of each other in most
organizations.

A. Only statement 1 is correct C. Both statements are correct

B. Only statement 2 is correct D. Both statements are incorrect

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